PARADISE ISLAND, The Bahamas, May 5, 1998 - Sun
International Hotels Limited (NYSE: SIH) reported first quarter
earnings per share of $0.87, a 30% increase over the same period last year.
The Company generated net income of $29.9 million compared to net income
before extraordinary items of $22.6 million for the same period last year.

Paradise Island

The Paradise Island operations achieved good results for the quarter,
generating earnings before interest, taxes and depreciation (EBITDA) of
$24.3 million, an 8% increase over the same period last year. The
1,147-room Atlantis
Resort achieved an occupancy of 92% for the quarter at an average
room rate of $223, a 12% increase over the average room rate in the first
quarter of last year.

Gross revenues from the Paradise Island operations declined over the
same period last year due to the closure of the Company's 560-room Pirate's
Cove Hotel during September 1997. The Pirate's Cove Hotel was closed to
the public in order to utilize the facility to house construction workers
for the Phase II expansion to Atlantis. During the first quarter of 1997,
the Pirate's Cove Hotel contributed $5.3 million of revenues and $1.8 million
of EBITDA.

The Company will continue to operate the Pirate's Cove Hotel for construction
workers until October of this year, at which time it shall be demolished
to begin to make way for the development of future phases to Atlantis.
The Company's estimated $450 million expansion to Atlantis is proceeding
well. The new development, which will be connected to the existing Atlantis
complex by a new casino straddling a seven-acre lagoon, includes a deluxe
1,208-room hotel and convention facilities, as well as a dramatic expansion
to the ocean-themed adventure environment and thrill rides of Atlantis.
Construction of the expansion is proceeding well and is anticipated to
open on schedule for Christmas of 1998.

Atlantic City

Resorts Casino Hotel in Atlantic City, which was acquired by the Company
in December 1996, generated EBITDA of $6.7 million for the quarter compared
to $6.2 million for the same period last year. Despite the addition
of new rooms at several competing casinos and the opening of Bally's Wild
Wild West, Resorts achieved a satisfactory 2% growth in revenues over the
same period last year. Slot revenues, which increased in the quarter
by 7% compared to the same period last year, were largely offset by a decrease
in table revenues resulting from the Company's decision to discontinue
pursuing certain less profitable segments of the market.

The Company further announced that it has revised its previously announced
$150 million redevelopment plan of the existing Resorts Casino Hotel as
the Beach Club. The Company has determined to limit the project to the
renovation of the existing 500-room hotel tower incorporating the elements
of the Beach Club theme as well as completing modest enhancements to the
public areas. The scope of the renovation of the existing facility will
be materially smaller than the previously announced $150 million program
and will result in less disruption to the facilities during construction.
Mr. Kerzner stated that "after detailed planning, we determined that achieving
the desired objective of completely retheming the existing public spaces
and improving their operating efficiency would be difficult to complete
within the budget of $150 million. We will continue with our plans to renovate
the guest rooms which will significantly enhance the experience of the
hotel customer. This renovation should be complete by the beginning of
the summer of 1999."

Mr. Kerzner further announced that "having operated in Atlantic City
for over a year, we are confident in the prospects for the future development
of the Resorts Casino Hotel. In addition to renovating the existing hotel
rooms, we are seriously evaluating the possibility of developing a larger
project on our undeveloped real estate through which we could more fully
realize the enormous potential of the concept of the Beach Club. We plan
on moving forward immediately with our renovation plan while considering
various expansion alternatives. We remain committed to our goal of establishing
one of the new generation mega-resorts in Atlantic City." The Company noted
that the planning of any future expansion is still in the preliminary stages
and the scope and timing of such development is uncertain.

Connecticut

The Mohegan Sun Casino, which is managed by a partnership in which the
Company has a 50% interest, performed
very well for the quarter, generating earnings before interest, taxes,
management fees, depreciation and bingo ("Adjusted EBITDA") of $48.5 million,
a 49% increase over the same period last year. The property achieved
an Adjusted EBITDA margin of 35% for the quarter.

Slot revenues for the quarter increased by 29% over the same period
last year with a slot win per unit per day of $359 compared to $312 last
year. The overall Connecticut gaming market continued to demonstrate
strong growth in the quarter, with slot revenues increasing by 23% over
the same period last year. The Company's share of management fees
was $8.0 million for the quarter.

The Company has furnished its quarterly results to the Securities and
Exchange Commission. Inquiries should be directed to Drew Goldman, Vice
President of Investor Relations and Strategic Planning, of Sun International
Hotels Limited at 242-363-6021.

This press release contains forward-looking statements which are made
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially from
the forward-looking statements.